{"id":91416,"date":"2016-06-16T16:59:27","date_gmt":"2016-06-16T20:59:27","guid":{"rendered":"http:\/\/countingpips.com\/?p=91416"},"modified":"2016-06-16T07:01:12","modified_gmt":"2016-06-16T11:01:12","slug":"todays-five-most-important-tech-charts","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/06\/todays-five-most-important-tech-charts\/","title":{"rendered":"Today\u2019s Five Most Important Tech Charts"},"content":{"rendered":"
June 16, 2016<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Today\u2019s<\/p>\n

She\u2019s one of the best in the business at spotting major tech trends before they happen.<\/p>\n

And since we\u2019re all about spotting big trends early, too, venture capitalist Mary Meeker is well worth our time and attention.<\/p>\n

Particularly right now, too.<\/p>\n

Each year, Meeker releases a comprehensive PowerPoint presentation on the state of the internet.<\/p>\n

\u201cFrom the funding climate to smartphone adoption to tech giants to cutting-edge inventions, the Mary Meeker Internet Trends<\/em> report has it all,\u201d writes TechCrunch\u2019s Josh Constine.<\/p>

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He\u2019s right.<\/p>\n

Plus, there\u2019s something about seeing data represented visually that drives home the significance of trends more powerfully.<\/p>\n

More importantly, it highlights their investment potential.<\/p>\n

There\u2019s just one problem: I\u2019m guessing you don\u2019t have the time to sift through all 213 slides. (Told you it was comprehensive!)<\/p>\n

I\u2019m here to help. I\u2019m going to give you the \u201cCliffs Notes\u201d version of Meeker\u2019s 2016 Internet Trends<\/em> report.<\/p>\n

Here are five of the most fascinating stats and charts she shared \u2013 and of course, their investment implications\u2026<\/p>\n

~ Tech Stat #1: Old (Advertising) Habits Die Hard<\/strong><\/p>\n

As the old saying goes, \u201cAdvertising follows eyeballs.\u201d So why is it that companies still refuse to accept this reality?<\/p>\n

Ad spending on print, radio, and TV accounted for 65% of total advertising spending\u2026 even though people spend 53% of their total time in those legacy media.<\/p>\n

As you can see, the biggest disconnect and opportunity exists in mobile advertising. Ad spending needs to roughly double from current levels to reach equilibrium.<\/p>\n

\"Advertising<\/p>\n

Cashing in on this trend couldn\u2019t be more straightforward \u2013 own the platforms that serve up the majority of ads.<\/p>\n

That leads us to Alphabet Inc. <\/strong>(GOOGL<\/a>) and Facebook Inc.<\/strong> (FB<\/a>). Combined, the companies control 76% of the U.S. advertising market, according to Meeker.<\/p>\n

~ Tech Stat #2: <\/strong>Amazon (and E-Commerce) Eating the World<\/strong><\/p>\n

As billionaire chairman of Sears Holdings Corporation <\/strong>(SHLD<\/a>), Eddie Lampert, is learning the hard way, brick-and-mortar retail is on its deathbed.<\/p>\n

That\u2019s because consumers are doing more shopping online.<\/p>\n

Anecdotally, I\u2019m sure we\u2019ve all realized the change in our personal shopping habits. But as you can see, this is a widespread phenomenon. More than 10% of retail purchases are now made online. And there\u2019s no end in sight to the growth.<\/p>\n

\"The<\/p>\n

The investment implications couldn\u2019t be more obvious.<\/p>\n

Avoid (or consider selling short) old-school, struggling retailers like Macy\u2019s Inc. <\/strong>(M<\/a>) and J. C. Penney Company Inc. <\/strong>(JCP<\/a>), and own the undisputed king of online retailing, Amazon.com Inc.<\/strong> (AMZN<\/a>).<\/p>\n

~ Tech Stat #3: <\/strong>There\u2019s Only One Social Media Network That Matters<\/strong><\/p>\n

I\u2019ve spilled plenty of pixels bashing the long-term potential for social media<\/a> darling turned dud, Twitter Inc.<\/strong> (TWTR<\/a>).<\/p>\n

Thanks to Meeker, all I have to do now is point to this picture.<\/p>\n

\"All<\/p>\n

While Baby Boomers have been the engine of economic growth for decades, it\u2019s now the Millennials\u2019 turn. There are now more Millennials (87 million) than Boomers (76 million). And their preference for social media platforms is clear.<\/p>\n

In terms of time spent and penetration, there\u2019s Facebook and everyone else. If you\u2019re going to own any social media stocks, there\u2019s only one choice.<\/p>\n

~ Tech Stat #4: <\/strong>Machine Speech Recognition Now Matches Humans<\/strong><\/p>\n

From Amazon\u2019s Alexa<\/a> to Apple Inc.\u2019s<\/strong> (AAPL<\/a>) Siri, virtual assistant use is on the rise.<\/p>\n

Heck, 20% of Google searches on Android devices are now voice.<\/p>\n

It also helps that voice interfaces are quick, easy, personalized, hands-free, and affordable.<\/p>\n

There\u2019s a more important key trend underpinning this growth, though: More accurate voice recognition.<\/p>\n

In fact, machine speech recognition is now at human levels in low-noise environments, according to Meeker.<\/p>\n

\"Knight<\/p>\n

As for Siri, it still struggles with my wife\u2019s Southern accent, so it\u2019s clear that we need more tech advancement here.<\/p>\n

As Meeker points out, in addition to handling diverse speaker and accent characteristics, voice recognition in heavy background noise situations is the next frontier of innovation and growth.<\/p>\n

And that\u2019s what makes smaller innovators in this space such compelling investments. I\u2019m talking about guys like Nuance Communications Inc. <\/strong>(NUAN<\/a>) and Kopin Corporation <\/strong>(KOPN<\/a>).<\/p>\n

~ Tech Stat #5: <\/strong>Data Storage and Security Explosion<\/strong><\/p>\n

As you know, our \u201calways-on, always-connected\u201d society means there\u2019s an incredible amount of digital data being created.<\/p>\n

And there\u2019s no end in sight, either.<\/p>\n

In fact, we churn out an astonishing 2.5 quintillion (that\u2019s a one followed by 18 zeros) bytes of new data every day.<\/em><\/p>\n

The end result? As Meeker points out, global data growth is soaring at a 50% compound annual growth rate.<\/p>\n

Interestingly enough, as data volume climbs, storage costs are plummeting by about 20% per year.<\/p>\n

\"Data<\/p>\n

This is one heck of a disconnect.<\/p>\n

There are two ways to profit from this situation \u2013 storage and security.<\/p>\n

Data center real estate investment trusts (REITs) like Digital Realty Trust Inc. <\/strong>(DLR<\/a>), Equinix Inc. <\/strong>(EQIX<\/a>), CoreSite Realty Corp.<\/strong> (COR<\/a>), CyrusOne Inc.<\/strong> (CONE<\/a>), DuPont Fabros Technology Inc.<\/strong> (DFT<\/a>), and QTS Realty Trust Inc.<\/strong> (QTS<\/a>) have all proved to be reliable performers.<\/p>\n

But as storage becomes increasingly cheap and commoditized, these businesses are going to face some headwinds.<\/p>\n

When it comes to security, however, I believe there\u2019s unbounded upside.<\/p>\n

Think about it: It\u2019s not enough to just store<\/em> the data. We need to protect<\/em> it all, too.<\/p>\n

It can be hard to picture the enormity of this expansion in digital terms.<\/p>\n

To help, though, try thinking about each byte of data and device as a landmass. The more bytes we produce \u2013 and the more devices in use \u2013 the larger the overall landmass gets. And every last inch of it needs to be defended against attack.<\/p>\n

Long story short \u2013 the cyber-attack \u201csurface area\u201d is growing at a dizzying pace.<\/p>\n

Cyber-security provider Proofpoint Inc. <\/strong>(PFPT<\/a>) estimates that it will surge a staggering 44-fold over the next 10 years.<\/p>\n

That means the PureFunds ISE Cyber Security ETF <\/strong>(HACK<\/a>) \u2013 and the individual companies in the ETF \u2013 promise to be standout performers.<\/p>\n

So there you have it. That\u2019s my five most important takeaways from Mary Meeker\u2019s presentation. And if you\u2019re interested in the rest of it, you can read the full report here<\/a>. It\u2019s fascinating stuff.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

The post Today\u2019s Five Most Important Tech Charts<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com She\u2019s one of the best in the business at spotting major tech trends before they happen. And since we\u2019re all about spotting big trends early, too, venture capitalist Mary Meeker is well worth our time and attention. Particularly right now, too. Each year, Meeker releases a comprehensive PowerPoint presentation on the state of […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-91416","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/91416","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=91416"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/91416\/revisions"}],"predecessor-version":[{"id":91430,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/91416\/revisions\/91430"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=91416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=91416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=91416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}